Daily Nifty Chart
Bullish candle at a very important support level. The daily oscillators are still above midline indicating strength. The downtrendline from 5110 has been decisively broken indicating possibility of more upsides Point of concern is that the volumes were extremely low, hence OBV has to yet give a breakout from the same downtrendline.
In my post on 8th October --view here
I had shown a series of failed head and shoulders pattern and mused whether we are in for a similar failure.Technical analysis is based on the fact that "history repeats itself". Lets see whether it repeats here or is a new story going to be written.
The head and shoulder pattern is still valid. The neckline has support at 4940.The uptrendline from March lows has support at 4962.
The Nifty is still stuck in the range of 5110-4920. I would prefer to remain neutral till the range is broken.
Happy Trading !!